LLC Formation Cost Calculator
Illinois LLC 2026

$225 to form your Illinois LLC

$150 state filing fee · $75annual report. 5-year cost of ownership: $525.

By Aissam Baidi · Reviewed against www.ilsos.gov · Verified 2026-05-15

How much does a Illinois LLC cost in 2026? A Illinois LLC costs $225 in year one ($150 filing fee for the Form LLC-5.5 (Articles of Organization)). Ongoing cost is $75/year ($75 annual report). Five-year total: $525. Standard processing takes about 10 business days; expedite for $100 extra. At $225, Illinois runs $70 above the US median of $155 for year-one LLC costs, mostly driven by higher state filing fees. Illinois sits in the mid-range for LLC formation costs, competitive enough for in-state operators with no major surprise fees beyond what's listed here. Sourced from www.ilsos.gov, verified 2026-05-15.

Filing fee $150 Form LLC-5.5 (Articles of Organization)
Annual / recurring $75 annual report
Processing 10 days expedite +$100
5-year total $525
2025 business formations 158,700 total entity filings, all types
Current processing window 5-10 business days online; 10-15 business days by mail verified 2026-05-15 from apps.ilsos.gov
Top sectors for new Illinois businesses
  1. #1Professional, Scientific & Technical Services
  2. #2Health Care & Social Assistance
  3. #3Retail Trade
SBA Office of Advocacy 2024-2025 State Profile

Customize your Illinois LLC cost

Add a registered agent, expedite, or operating agreement, see your exact total.

LLC Cost Calculator

Pick your state, choose any add-ons, and see the year-one + 5-year math. Every figure cites the state's Secretary of State or the IRS.

The U.S. state where you'll file LLC paperwork. Foreign qualification fees apply if you operate elsewhere.

State filing fee is the same for any member count; member count drives IRS tax classification (single-member = disregarded; multi-member = partnership).

Operating agreement

Not legal advice. Estimates based on publicly available data from each state's Secretary of State office. Consult a licensed attorney in your jurisdiction.

Illinois vs the rest of the US

Year-1 LLC cost in Illinois is $225. That's $190 more than the cheapest state (Montana). Form there if you can register your business out-of-state.

Illinois You are here Your state
$225
Ohio Peer state
$99
Texas Peer state
$300
Delaware Peer state
$390
Wyoming Peer state
$160
Montana Cheapest in US
$35
Massachusetts Most expensive
$1,000

All figures are year-1 LLC formation cost (state filing fee + first-year report fee + first-year franchise tax). Sourced quarterly from each state's Secretary of State office.

5-year cumulative cost projection

How Illinois's LLC cost compares against the popular "shop another state" alternatives over 5 years of ownership. Steeper line = higher recurring cost.

$0 $500 $1,000 $1,500 $2,000 Year 1Year 2Year 3Year 4Year 5 Illinois Delaware Wyoming New Mexico
After 5 years of ownership, Illinois totals $525. Delaware: $1,590 (+$1,065). Wyoming: $400 (save $125). New Mexico: $50 (save $475).

All 50 states + DC, by 5-year LLC cost

Heat-map of 5-year ownership cost across the US. Click any state to see its full breakdown. Cheapest in green, most expensive in dark red.

  • Cheapest 20%
  • Below average
  • Average
  • Above average
  • Most expensive 20%
Alaska: $450 over 5 years Alabama: $700 over 5 years Arkansas: $1,245 over 5 years Arizona: $50 over 5 years California: $4,130 over 5 years Colorado: $175 over 5 years Connecticut: $1,770 over 5 years District of Columbia: $999 over 5 years Delaware: $1,590 over 5 years Florida: $818.75 over 5 years Georgia: $350 over 5 years Hawaii: $118.5 over 5 years Iowa: $110 over 5 years Idaho: $100 over 5 years Illinois: $525 over 5 years Indiana: $159 over 5 years Kansas: $185 over 5 years Kentucky: $990 over 5 years Louisiana: $250 over 5 years Massachusetts: $3,000 over 5 years Maryland: $1,600 over 5 years Maine: $515 over 5 years Michigan: $150 over 5 years Minnesota: $155 over 5 years Missouri: $50 over 5 years Mississippi: $50 over 5 years Montana: $35 over 5 years North Carolina: $1,135 over 5 years North Dakota: $385 over 5 years Nebraska: $156 over 5 years New Hampshire: $510 over 5 years New Jersey: $1,250 over 5 years New Mexico: $50 over 5 years Nevada: $1,825 over 5 years New York: $218 over 5 years Ohio: $99 over 5 years Oklahoma: $229 over 5 years Oregon: $600 over 5 years Pennsylvania: $153 over 5 years Rhode Island: $2,406 over 5 years South Carolina: $110 over 5 years South Dakota: $425 over 5 years Tennessee: $2,300 over 5 years Texas: $300 over 5 years Utah: $149 over 5 years Virginia: $350 over 5 years Vermont: $1,630 over 5 years Washington: $480 over 5 years Wisconsin: $255 over 5 years West Virginia: $200 over 5 years Wyoming: $400 over 5 years

5-year cost = year-1 (state filing + first-year report + first-year franchise tax) + 4 years of ongoing (annual/biennial report + franchise tax). Sourced quarterly from each Secretary of State.

Where would you save the most?

Filing in Montana instead of Illinois could save you about $490 over 5 years (93% lower total).

Cross-state filing requires foreign qualification in the state you actually operate from, which adds $50-$300/year in fees plus a registered agent in each jurisdiction. Run the math before deciding.

Cheapest 5-year LLC states

  1. #1 Montana $35
  2. #2 Arizona $50
  3. #3 Mississippi $50

Most expensive 5-year LLC states

  1. #1 California $4,130
  2. #2 Massachusetts $3,000
  3. #3 Rhode Island $2,406
AI Insights

Illinois LLC formation, decoded

Cost dynamics

Illinois requires a $75 annual report to keep the LLC in good standing. Filing on time avoids late penalties and administrative dissolution.

Insights compiled from primary government sources (Secretary of State, IRS, Census BFS) and verified by Gemini 2.5 with Google Search grounding. Last refreshed 2026-06-01.
Full Illinois LLC cost guide

Illinois LLC Cost: $150 Filing + $75 Annual Report (2026)

Forming an LLC in Illinois costs $150 to file the Articles of Organization (Form LLC-5.5) and $75/yr for the annual report. Multi-member LLCs taxed as partnerships also owe Illinois’s 1.5% Personal Property Replacement Tax on net income, separate from the standard state income tax. Year-one cost: $225. Five-year cost (no add-ons): $450, plus PPRT for partnerships.

Reviewed by LLC Formation Cost Editorial Team, fact-checked against primary government sources • Last updated 2026-05-15 • 4 primary government sources cited

TL;DR

Illinois LLCs file Form LLC-5.5 with the Illinois Secretary of State for $150. The annual report is $75 due during the LLC’s anniversary month. Illinois imposes the Personal Property Replacement Tax (PPRT), 1.5% of net income for LLCs taxed as partnerships, on top of the state’s 4.95% personal income tax for owners. Single-member LLCs taxed as disregarded entities pass through to the owner’s individual return without PPRT. Expedite is available: 24-hour for $100 additional. Filings are typically processed in 10 business days standard.

Illinois LLC cost breakdown (2026)

Line itemCostSource
Articles of Organization (Form LLC-5.5)$150ilsos.gov
Annual Report$75ilsos.gov
Personal Property Replacement Tax (multi-member partnership)1.5% of net incometax.illinois.gov
Expedited filing (24-hour)+$100ilsos.gov
Series LLC filing$400ilsos.gov
Late annual report penalty$100ilsos.gov
Year 1 total (single-member, no add-ons)$225
Year 2+ ongoing (single-member)$75
5-year total (single-member)$525

All figures verified 2026-05-15 from primary Illinois state sources.

Why Illinois costs more than the basics suggest

Most state cost guides quote Illinois as “$150 + $75/yr.” That’s accurate for the SOS fees but misses the Personal Property Replacement Tax, which surprises multi-member founders. PPRT is a 1.5% tax on net income for LLCs taxed as partnerships, payable to the Illinois Department of Revenue. It was created in 1979 to replace personal-property taxes that local governments lost when the state phased them out. PPRT is in addition to:

  • Federal income tax on the owner’s share of profits
  • Illinois personal income tax (4.95% flat) on the owner’s share
  • The annual report fee ($75 to the SOS)

For a multi-member LLC with $200,000 net profits split 50/50:

  • PPRT: $200K × 1.5% = $3,000 (paid by the LLC)
  • IL personal tax: $100K × 4.95% × 2 partners = $9,900 (paid by partners)
  • Federal SE tax + income tax: depends on partner brackets

PPRT is the gotcha. Single-member LLCs taxed as disregarded entities are exempt from PPRT, they file directly on the owner’s Illinois personal return. Single-member is the common workaround.

Filing steps (DIY, no service)

  1. Pick a name, search availability via ilsos.gov LLC name search. Names must include “Limited Liability Company,” “LLC,” or “L.L.C.”
  2. Designate a registered agent, must have an Illinois street address.
  3. File Form LLC-5.5, $150 fee. File online at cyberdriveillinois.com or by mail to Illinois Secretary of State, Department of Business Services, 501 S. Second St., Springfield, IL 62756.
  4. Get a federal EIN, free at irs.gov.
  5. Draft an operating agreement, not required by Illinois law but recommended.
  6. Register with IDOR, Illinois Department of Revenue registration for any state tax (sales, withholding, PPRT for partnerships) via MyTax Illinois.
  7. Open a business bank account, Illinois-located banks (Chase, BMO Harris, Northern Trust) accept IL LLC documents.
  8. File annual report, due first day of anniversary month each year. $75 fee. $100 late penalty.
  9. File FinCEN BOI report, within 30 days of formation. Free at fincen.gov/boi.
  10. Calendar PPRT filing if multi-member, annual on Form IL-1065 with the IDOR.

Standard online filings via cyberdriveillinois.com are processed within 10 business days. 24-hour expedite is available for $100 additional.

Page-unique facts

  • Illinois is one of 4 states allowing Series LLCs. (Along with DE, TX, WY among the popular states.) IL Series LLC filing is $400 (vs $150 for a regular LLC). Each series has separate liability shielding within the master LLC.
  • PPRT is unique to Illinois. No other state has a comparable tax on partnership income. Source: tax.illinois.gov PPRT FAQ.
  • Illinois flat personal income tax is 4.95% for 2026. The graduated income tax ballot initiative failed in 2020, the flat rate has held since.
  • Series LLC filings are popular for Chicago real estate. Each property held by a separate series, isolating liability without filing separate LLCs.
  • Illinois biennial elections impact regulatory speed. SOS staffing fluctuates around election cycles; Q3-Q4 of even years often slowest.

FAQ

What is Illinois’s Personal Property Replacement Tax?

Illinois imposes a 1.5% tax on LLC net income for LLCs taxed as partnerships, separate from the standard state income tax. PPRT was created in 1979 to replace local personal-property taxes that were phased out. Single-member LLCs taxed as disregarded entities pass through to the owner’s personal return and avoid PPRT. Multi-member partnerships pay 1.5% at the entity level, then partners pay individual income tax on their distributive share. Source: tax.illinois.gov, verified 2026-05-15.

When is the Illinois LLC annual report due?

First day of the LLC’s anniversary month. So if you formed in March 2026, the 2027 annual report is due March 1, 2027. Late filing penalty: $100. Failure to file by 60 days after due date triggers administrative dissolution. Source: cyberdriveillinois.com.

Can I expedite Illinois LLC filing?

Yes, 24-hour expedited service for $100 additional fee on top of the $150 filing fee. Standard online filing is typically 10 business days. Expedite is processed at the Illinois Secretary of State’s Springfield office. Source: ilsos.gov.

Does Illinois allow Series LLCs?

Yes. Illinois is one of 4 states (with Delaware, Texas, Wyoming among the popular ones) that allow Series LLCs. The IL Series LLC filing fee is $400 (vs $150 for a regular LLC). Each series within the master LLC has separate liability shielding. Common pattern for Chicago real estate investors holding multiple properties. Source: ilsos.gov Series LLC.

Should I form a PLLC instead of a regular LLC in Illinois?

If you’re a licensed professional in Illinois, physician, attorney, dentist, CPA, architect, engineer, veterinarian, or one of about 20 other regulated professions, Illinois law typically requires you to form a Professional Limited Liability Company (PLLC), not a standard LLC. The PLLC filing fee is $250 (vs $150 for a regular LLC), filed on Form LLC-5.5(P). Each member must hold an active Illinois license in the same profession. The PLLC structure preserves personal liability for malpractice (you can’t shield yourself from professional negligence) but does shield owners from each other’s malpractice and from non-malpractice business liabilities like landlord disputes. The American Bar Association Section of Business Law maintains state-by-state PLLC formation guides.

How does the Personal Property Replacement Tax interact with federal taxes?

PPRT is paid by the LLC entity (multi-member partnership) at 1.5% of net Illinois income, then the partners separately pay Illinois personal income tax (4.95% flat) on their distributive share. For federal purposes, PPRT is deductible as a state and local tax (SALT) on the partnership’s Form 1065, reducing federal partnership income before it flows to partners’ personal returns. The IRS treats PPRT as an entity-level tax similar to a state corporate income tax. See IRS Illinois Small Business Resources and IRS Publication 3402 for the federal classification framework.

State quirk: PPRT, the 1979 holdover that still surprises founders

Illinois has the Personal Property Replacement Tax (PPRT), a 1.5% net-income tax on multi-member LLCs taxed as partnerships, plus 0.0025% on partnership income from sources within Illinois, that exists nowhere else in the country. PPRT was created by the 1979 Illinois Constitutional amendment that abolished the state’s personal property tax on businesses; the legislature replaced the lost local-government revenue with the PPRT, channeled through the Illinois Department of Revenue and redistributed back to local taxing districts. Illinois is also one of only four popular states that authorize Series LLCs (along with DE, TX, WY), but charges $400 for the Series LLC filing, nearly triple the regular LLC fee, making Series LLCs cost-effective only when the master entity will hold three or more series-protected assets.

Common mistake in Illinois

The most expensive Illinois LLC mistake is forming a multi-member LLC for a Chicago side-business and discovering at tax time that the entity owes 1.5% PPRT on net income to the Illinois Department of Revenue, a tax that doesn’t exist in any other state and isn’t on most general LLC checklists. Founders sometimes restructure to single-member by buying out a co-founder just to escape PPRT, which is messy and triggers a partnership-termination event for federal purposes.

Sources

  1. Illinois Secretary of State LLC Information, last verified 2026-05-15
  2. Illinois Department of Revenue, last verified 2026-05-15
  3. MyTax Illinois Business Registration, last verified 2026-05-15
  4. Illinois Compiled Statutes Chapter 805 LLC Act, last verified 2026-05-15
  5. IRS Illinois Small Business and Self-Employed Resources, last verified 2026-05-15
  6. American Bar Association Section of Business Law, last verified 2026-05-15

About the author

Aissam Baidi is the founder and researcher behind llcformationcost.com. He verifies Illinois LLC fees directly from ilsos.gov and tax.illinois.gov on a quarterly cycle. Connect on LinkedIn.

Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.

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AI Q&A

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What's the actual filing fee in Illinois?

Illinois charges $150 to file the Form LLC-5.5 (Articles of Organization) with www.ilsos.gov. Expedited service is available for an additional $100, reducing turnaround to about 1 business days vs. the standard ~10.

Does Illinois have a franchise tax?

No. Illinois does not impose a flat franchise tax on LLCs. Some pass-through entity income may still be taxed at the member level under state income tax rules.

What's the annual report situation in Illinois?

Illinois requires a annual report at $75.

Do I need a registered agent in Illinois?

Yes. Every Illinois LLC must designate a registered agent with a physical Illinois street address (no P.O. boxes), available during business hours to accept legal mail. You can serve as your own agent for free if you live in Illinois, but most founders use a commercial service ($100-150/year) to keep their home address off the public record.

Should I form my LLC in Illinois?

Form in Illinois if you operate primarily in Illinois. Out-of-state formation (Delaware, Wyoming, etc.) requires foreign-LLC qualification in your home state, doubling fees. The exception is highly venture-funded startups raising priced rounds, where Delaware is investor-expected.

Live answers grounded in primary state SOS sources. No account needed; we don't save your question.

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Illinois-specific Operating Agreement preview

Five substantive sections with Illinois-specific clauses (filing form, franchise tax, publication requirements, governing law). Use as a starting point with your attorney, or upgrade for the full 12-section document.

OPERATING AGREEMENT OF [COMPANY NAME], LLC

A Illinois Limited Liability Company
Generated 2026-06-01 • State-specific template

Article I. Formation

This Operating Agreement is entered into as of [date], by and among the undersigned members of [Company Name], a Limited Liability Company organized under the Illinois Limited Liability Company Act. The Company was formed by filing the Form LLC-5.5 (Articles of Organization) with the Illinois Secretary of State on [filing date]. The Company's principal office is located at [address], Illinois.

Article II. Members & Membership Interests

The members of the Company are listed on Exhibit A. Each member's capital contribution and percentage interest are set forth therein. Members may be admitted only by [unanimous / majority] consent of existing members. Illinois law does not mandate a written operating agreement, but the parties agree that this writing governs.

Article III. Management

The Company shall be [member-managed / manager-managed]. Illinois default rules apply to any matter not addressed here. The Company shall timely file the annual report ($75) with the Illinois Secretary of State to maintain good standing.

Article IV. Distributions & Allocations

Profits, losses, and distributions shall be allocated among members in proportion to their percentage interests, except as otherwise agreed in writing. Distributions shall be made [quarterly / annually / at the discretion of the [members / managers]]. The Company shall maintain capital accounts in accordance with Treas. Reg. § 1.704-1(b).

Article V. Dissolution & Illinois-Specific Provisions

The Company shall dissolve upon [vote of majority members / occurrence of specific events]. Upon dissolution, the Company shall wind up its affairs and distribute remaining assets in accordance with Illinois law. This agreement is governed by Illinois law and any disputes shall be resolved in [forum].

7 more sections in the full document

Tax matters, indemnification, transfer restrictions, dissolution mechanics, signature pages, exhibits A & B (member roster + capital contributions), and amendment procedures. Plus state-specific signature-line text per $Illinois convention.

Get the open dataset (free, CC BY 4.0)

Not legal advice. This template is a starting point for discussion with a licensed Illinois attorney. Operating Agreements should be reviewed by counsel for your specific situation.

Illinois LLC cost vs popular alternatives

A common decision is whether to form in your home state or an out-of-state filing state (Delaware, Wyoming, New Mexico). Out-of-state formation usually requires foreign-LLC registration in your home state too, adding both filing costs.

State First-year cost Annual renewal Franchise tax Processing days Publication required
Illinois $225 $75 - 10 days -
Ohio $99 $0 - 5 days -
Texas $300 $0 - 7 days -
Delaware $390 $300 - 14 days -
Wyoming $160 $60 - 14 days -

Fees verified 2026-05-15 from each state's Secretary of State.

Frequently asked questions about Illinois LLCs

How much does it cost to form an LLC in Illinois in 2026?

Illinois charges $150 to file the Form LLC-5.5 (Articles of Organization). An ongoing annual report fee of $75 keeps the LLC in good standing. Verified 2026-05-15 from www.ilsos.gov.

Does Illinois require an annual report?

Yes. Illinois requires a annual report at $75.

What is the processing time in Illinois?

Standard processing in Illinois takes about 10 business days. Expedited processing is available for an additional $100, reducing turnaround to about 1 business days.

Does Illinois have a publication requirement?

No. Illinois does not require LLC formation to be published in newspapers.

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Best State Recommender 5-question decision tree: form in Illinois or somewhere else? Honest, non-affiliate. Foreign LLC Cost Calculator Form in one state, operate in Illinois? See the actual cost, both states' fees combined. Registered Agent Cost Comparator Sortable table of all major RA services + the $0 "act as your own agent" path. S-Corp Savings Calculator Income-threshold math: at what profit does S-corp election save you money? Compare LLC Services Pick any LLC formation service, see real cost vs filing direct with Illinois's SOS.

Not legal advice. Estimates based on publicly available data from each state's Secretary of State office. Consult a licensed attorney in your jurisdiction.